Correlation Between Greatek Electronics and Getac Technology
Can any of the company-specific risk be diversified away by investing in both Greatek Electronics and Getac Technology at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Greatek Electronics and Getac Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greatek Electronics and Getac Technology Corp, you can compare the effects of market volatilities on Greatek Electronics and Getac Technology and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Greatek Electronics with a short position of Getac Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greatek Electronics and Getac Technology.
Diversification Opportunities for Greatek Electronics and Getac Technology
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Greatek and Getac is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Greatek Electronics and Getac Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getac Technology Corp and Greatek Electronics is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Greatek Electronics are associated (or correlated) with Getac Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Getac Technology Corp has no effect on the direction of Greatek Electronics i.e., Greatek Electronics and Getac Technology go up and down completely randomly.
Pair Corralation between Greatek Electronics and Getac Technology
Assuming the 90 days trading horizon Greatek Electronics is expected to generate 0.54 times more return on investment than Getac Technology. However, Greatek Electronics is 1.85 times less risky than Getac Technology. It trades about -0.02 of its potential returns per unit of risk. Getac Technology Corp is currently generating about -0.03 per unit of risk. If you would invest 6,110 in Greatek Electronics on September 1, 2024 and sell it today you would lose (440.00) from holding Greatek Electronics or give up 7.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Greatek Electronics vs. Getac Technology Corp
Performance |
| Timeline |
| Greatek Electronics |
| Getac Technology Corp |
Greatek Electronics and Getac Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greatek Electronics and Getac Technology
The main advantage of trading using opposite Greatek Electronics and Getac Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greatek Electronics position performs unexpectedly, Getac Technology can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Getac Technology will offset losses from the drop in Getac Technology's long position.| Greatek Electronics vs. King Yuan Electronics | Greatek Electronics vs. Powertech Technology | Greatek Electronics vs. Realtek Semiconductor Corp | Greatek Electronics vs. Elan Microelectronics Corp |
| Getac Technology vs. Chicony Electronics Co | Getac Technology vs. Inventec Corp | Getac Technology vs. Synnex Technology International | Getac Technology vs. Micro Star International Co |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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